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Sunday, 22 January 2023

GB Capital sells a 45% stake in GB Lease to Chimera Investments

It’s official: Chimera to acquire 45% of GB Lease: GB Capital has finalized an agreement to indirectly sell 45% of its leasing business, GB Lease, to our friends at Chimera Investments for EGP 855 mn, parent company GB Auto said in an EGX disclosure (pdf) Thursday. This comes two weeks after GB Auto’s board greenlit the stake sale to the Abu Dhabi-based investment firm. GB Capital will a controling 55% stake in the company, which the transaction values at EGP 1.9 bn according to our math.

Refresher: GB Capital in September said it had entered talks with Chimera regarding a potential sale. The GB Auto subsidiary has been considering a partial selldown of its leasing business for over a year to bring in a strategic partner, during which time the company received proposals from several companies.

This isn’t the first time the two companies have partnered: In November, GB Auto sold Chimera a 7.5% stake in Netherlands-based MNT Investments as part of a larger agreement that would see Chimera purchase a 21.7% stake in the tech-enabled lender, which focuses on Egypt’s large unbanked population.

Advisors: Arqaam Capital acted as sell-side advisor to GB Capital, while Matouk Bassiouny & Hennawy acted as legal counsel. Adsero-Ragy Soliman and Partners acted as buy-side counsel to Chimera.

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